Grade A office market logs net absorption of 1.25 million sq ft in H122

Leading the market in recovery is the Central segment.

Despite being hit by the fifth wave, the Grade A office market was still able to log a net absorption of 1.25 million square feet (sq ft) for the first half of 2022.
 
Property expert JLL said the market was able to record net absorption due to the “realisation of pre-commitment in new supply and improved occupancies in decentralised locations.”
 
“The expansion demand mainly came from funds, private banks, flexible office space and healthcare occupiers. Funds and private banks continued to look for headcount growth in the city and upgraded workspace to support the needs of a tight talent market,” added JLL. 
 
The Central segment led the market recovery, with a 0.8% increase in rents in H122. It was the only segment to post an increase in rents.
 
“Central will be the focus of market activities in the remaining part of the year,” said JLL.
 
Whilst four of the five major segments recorded a decline in rents in H122, the overall office rental level only decreased by 0.2%.
 
Looking ahead, JLL said the market’s positive net absorption “will continue to improve in the second half of the year owing to sustained occupier demand who continue to look for high-quality options and upgrade workspace for talents.”
 
For the whole year, JLL expects the market to post a rental growth of 0%-5%.